Strategic Economic Partnership celebrated in India-UK Free Trade Agreement praised by Corporate India
The India-UK Free Trade Agreement, recently signed, marks a significant milestone in the strategic economic partnership between the two nations. The agreement is anticipated to create new business opportunities and foster growth in India's manufacturing and service sectors.
Ashok Hinduja, Chairman of Hinduja Group, hailed the FTA as a landmark moment, expressing his belief that it will drive job creation, deepen technology ties, and elevate bilateral trade. Ajay Piramal, Chairman of Piramal Enterprises, shared similar sentiments, viewing the FTA as a catalyst for job creation, youth empowerment, and building a future-ready workforce. He also emphasised that the FTA is a meaningful step toward inclusive, sustainable economic growth with global partnerships.
For India's manufacturing sector, the FTA offers several benefits. Tariff reductions and improved market access will enable Indian manufacturers to reach the UK market more easily. Key sectors such as textiles, engineering goods, pharmaceuticals, and handicrafts are expected to benefit significantly. Maharashtra hubs like Pune and Mumbai are anticipated to see higher garment exports, while Gujarat, particularly Ahmedabad, may experience a boost in pharmaceutical exports. States like Maharashtra will also benefit from increased exports of auto components and other engineering goods.
The FTA also presents opportunities for India's service sector, particularly in financial services and professional services. While specific details are less highlighted, Indian financial services companies may find a more level playing field, and professional services could potentially open up more opportunities in the UK market.
The agreement is expected to lead to increased exports, economic growth, and job creation in India. It may also attract more UK investment into India, particularly in sectors like manufacturing and services, contributing to India's economic development.
The FTA is expected to double bilateral trade to over $120 billion by 2030, according to Hemant Jain. Navin Agrawal, Partner and Head - India UK Corridor at KPMG in India, views the FTA as a decade-long blueprint for innovation, value chain integration, and shared growth between India and the UK.
Apparel units expect extra exports of Rs 7,000-cr to the UK due to the FTA, and Sudarshan Venu, Managing Director of TVS Motors, believes the FTA will open new frontiers for Indian companies to take 'Make in India' to the world. The FTA is expected to benefit the youth, farmers, fishermen, and the MSME sector, as per Prime Minister Modi.
The renewed FTA 2035 vision extends the strategic runway by five critical years, giving businesses and investors a longer horizon to plan, partner, and grow. The exact number of Free Trade Agreements (FTAs) that India has signed so far has not been specified in the current information. However, it is clear that the India-UK FTA offers a promising future for both nations.
- Ashok Hinduja, Chairman of Hinduja Group, and Ajay Piramal, Chairman of Piramal Enterprises, believe that the India-UK Free Trade Agreement will drive job creation, deepen technology ties, and elevate bilateral trade.
- The FTA offers several benefits to India's manufacturing sector, including tariff reductions, improved market access, and benefits to sectors like textiles, engineering goods, pharmaceuticals, and handicrafts.
- Moreover, the FTA presents opportunities for India's service sector, particularly in financial services and professional services, with potential for Indian financial services companies to find a more level playing field.
- The renewed FTA 2035 vision extends the strategic runway by five critical years, and the India-UK FTA is expected to double bilateral trade to over $120 billion by 2030, offering a promising future for both nations.
